A PLATE OF THIS A CUP OF THAT: WANTED WEDNESDAYS

“Price is what you pay.

Value is what you get.”

-Warren Buffett

Besides your every month expenses to keep a roof over your head and food on the table, some have to keep their car or cars protected. When picking the right insurance company it can be very difficult. Each company serves the same purpose however offers various unique benefits. For instance Liberty Mutual offers, when in an accident that totals the vehicle, to replace the said vehicle with not only a newer vehicle but a newer model as well. Nationwide offers the lowering of your deductibles as you remain a good driver. While Progressive tells you, you can choose your own price!!

Well as the consumer there is so many questions and concerns when choosing the right company. Who can give you the best quote? Who has the best offers? etc. We are here to clarify some myths that you may need reality checks on.

Myth: There’s not much you can do to lower your premium beyond the obvious, such as having a safe driving record and good credit.
Reality: There are other ways to reduce your premium. For example, you can have your vehicle identification number etched on your windshield and car windows. VIN etching makes it difficult for a thief to profit from stealing a car, and it also makes it difficult to dispose of the car after stealing it. Many police departments offer free VIN etching, or you can buy a VIN etching kit for about $25 and do it yourself. A number of insurance companies offer a discount or waive your deductibles if your car is VIN etched. To learn about other discounts, call your carrier and ask if there are any you’ve missed.

Myth: Red cars cost more to insure. Reality: There is no evidence that this is true, according to Loretta Worters, vice president of communications at the Insurance Information Institute. “The type of vehicle one drives will determine rates, including the make, model, engine, size, and year. Is it popular with thieves? Is it more costly to repair? Does it have a good safety record? That’s what insurers look at,” she says. Your best bet is to purchase a family car. Sports cars usually result in higher rates because those owners tend to drive faster. Family cars cost less to insure because they often attract drivers who are more careful. Family cars are also less expensive to repair (The National Highway Traffic Safety Administration ranks cars by their post-accident repair bills). According to Insure.com, the average insurance premium on a 2012 sports car is $1,776 annually, compared with $1,317 on a 2012 family sedan. For more information on vehicle risk levels, visit the website for the Insurance Institute for Highway Safety.

Myth 3: Your insurance policy covers any damage to your car.
It doesn’t work that way. Liability Insurance (required in some state) covers you if you hurt someone or damage their property. Comprehensive and collision coverage protect your vehicle. That is why this is always optional coverage. Note: It may be required by the lender if you have a lease or car loan.

What’s covered?

1. Comprehensive pays for damage to your vehicle (including broken glass) caused by something other than a collision with another vehicle or object. This would include losses caused by fire, theft, vandalism, severe weather, flooding and falling objects (such as a tree limb) or hitting an animal.

Collisioncoverage pays for damage to your vehicle caused from a collision with another vehicle or object. It also covers damage caused by potholes or if your vehicle flips over. Your insurance company will reimburse you for the cost of repairs (minus the deductible) even if you are at fault for the accident. The National Association of Insurance Commissioners points out that this is relatively expensive coverage, more costly than comprehensive.